MICROSOFT (present day)

1. The Immediacy Question

d. If the firm is under levered, examine its characteristics to see if it is a likely takeover target. (Target firms in hostile takeovers tend to be smaller, have poorer project and stock price performance than their peer groups, and have lower insider holdings.)

e. If your firm is over levered, evaluate whether the danger of bankruptcy by looking at the bond ratings and the financial ratios for the firm.